The Bureau of the Treasury (BTr) fully awarded reissued Treasury bonds for P30 billion at Tuesday’s auction where demand reached P56.8 billion.
The auction streamed on Facebook was nearly two times oversubscribed.
So far, the total outstanding volume for the series amounted to P224.7 billion.
With a remaining term of five years and four months, the securities fetched an average yield of 6.019 percent.
This was higher than the previous average of 5.968 percent and the Bloomberg Valuation Service rate for the five-year tenor of 5.935 percent.
Bids ranged from 5.975 percent to 6.04 percent.
Jonathan Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said via Viber that the rate is slightly higher as upside risks to inflation remain.
Demand was “higher on securities as investors preferred the safety of bonds amid the DisTRUMPtion from (US President Donald) Trump’s trade war,” Ravelas said, referring to disruption perceived to be caused by the US president’s trade policy.
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said also via Viber that the yield was slightly higher, “partly due to the Trump factor after US President Trump reiterated the 25 percent tariff rate on Canada and Mexico, doubled the tariff rate to 20 percent on China effective March 4, 2025.”
Ricafort said, “Trump signaled tariffs on US agricultural imports and reiterated reciprocal tariffs by April 2, 2025; all of which could lead to higher US inflation and fewer Fed rate cuts that could be matched by the BSP.”
